Chevron Strikes Big in Deepwater GOM

Wednesday, September 06, 2006
Chevron Corporation reported that it has completed a record setting production test on the Jack #2 well at Walker Ridge Block 758 in the U.S. Gulf of Mexico. The Jack well was completed and tested in 7,000 ft. of water, and more than 20,000 ft. under the sea floor, breaking Chevron's 2004 Tahiti well test record as the deepest successful well test in the Gulf of Mexico. The Jack #2 well was drilled to a total depth of 28,175 ft. The test was conducted during the second quarter of 2006 and was designed to evaluate a portion of the total pay interval. During the test, the well sustained a flow rate of more that 6,000 barrels of crude oil per day with the test representing approximately 40 percent of the total net pay measured in the Jack #2 well. Chevron and its co-owners plan to drill an additional appraisal well in 2007. More than a half a dozen world records for test equipment pressure, depth, and duration in deepwater were set during the Jack well test. For example, the perforating guns were fired at world record depths and pressures. Additionally, the test tree and other drill stem test tools set world records, helping Chevron and co-owners conduct the deepest extended drill stem test in deepwater Gulf of Mexico history. "Chevron continues to demonstrate its leading position employing deepwater exploration technology to develop new supplies of U.S. crude oil and natural gas with projects such as Jack," said George Kirkland, executive vice president Upstream and Gas. "Our strong strategic position in the deepwater Gulf of Mexico will continue to be a platform for future growth for years to come." Gary Luquette, president North America Exploration and Production, added, "The results of the Jack test allow Chevron and its co-owners to better understand the deliverability of the emerging Lower Tertiary Trend, a trend where Chevron is the largest leaseholder." Chevron continued to emphasize safety as a priority during the Jack well test. The team achieved no days away from work incidents, and no spills. Chevron announced discovery of the Jack prospect in September 2004. It is approximately 270 miles southwest of New Orleans and 175 miles offshore. Chevron is the operator with a 50 percent working interest. Devon and Statoil each own a 25 percent working interest. Chevron is the largest lease holder in the deepwater Gulf of Mexico, and is currently developing the $3.5 billion Tahiti project located in Green Canyon Block 640. The project is scheduled to commence production in 2008.

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